Egypt to get 2nd tranche of IMF’s $3 bln loan by end of March: Mission Chief

Egypt will be getting the second tranche of the International Monetary Fund (IMF) $3 billion-loan, estimated at around $347 million, by the end of March, the IMF Mission Chief for Egypt, Middle East and Central Asia Department Ivanna Vladkova Hollar said on Tuesday.

The second tranche of the loan will be disbursed following the completion of the first review of the loan programme, she added.

Hollar's remarks came in response to the state-owned media outlet, Ahram Online's, questions about the time the IMF will complete the reviews of Egypt’s loan programme and the way the 46 month programme supports the macroeconomic performance of the country.

The IMF approved in December a 46-month loan for Egypt under the Fund’s Extended Fund Facility (EFF) to address the impacts of the Russian-Ukrainian conflict that caused an unprecedented inflationary wave.

New IMF-backed reforms programme:

The IMF will conduct a biannual review during the period of the programme, in March and September of each year, and disburse equal tranches accordingly.

Hollar also noted that the IMF-backed programme for Egypt aims to preserve the country’s macroeconomic stability, restore buffers, and pave the way for sustainable, inclusive, and private-sector-led growth.

According to Hollar, the programme mainly aims to shift to a flexible exchange rate regime. It also aims to transition away from subsidising lending schemes and to adopt fiscal consolidation and debt management to ensure downward trajectory in public-debt-to-GDP. The program also aims to contain gross financing needs and bridge the financing gap.

 Hollar affirmed in this regard that the monetary policy adopted over the past years has obstructed the Egyptian economy and has decreased the levels of confidence in the country’s economy.